Zepto shifts headquarters from Singapore to India
This relocation, commonly known as a reverse flip, allows the Mumbai-based company to establish its headquarters in India and move forward with its plans for an initial public offering (IPO), which has been in progress for several months.
Quick commerce platform Zepto has officially transitioned its domicile from Singapore to India, as confirmed by the company’s Chief Financial Officer (CFO), Ramesh Bafna.
"Historic scenes on completion of #IndiaFirst reverse merger from Singapore to India in the #FastestEver timeline," Bafna said in his LinkedIn post.
This relocation, commonly known as a reverse flip, allows the Mumbai-based company to establish its headquarters in India and move forward with its plans for an initial public offering (IPO), which has been in progress for several months.
“This is a display of understanding of (the) technicals, working with right partners, getting into (the) nuts and bolts on execution, unblocking natural causes of delay and tactical calls real time by an empowered team,” the post said.
The transition follows the National Company Law Tribunal’s (NCLT) recent approval of Zepto’s reverse merger.
With this move, Zepto joins companies like Groww and PhonePe, which have also relocated their domicile to India from the US and Singapore. Several other fintech firms, including Flipkart, KreditBee, Pine Labs, Razorpay, and Meesho, are also in the process of executing reverse flips.
Earlier, the Indian entity operated as a subsidiary of Kiranakart Pte Ltd, headquartered in Singapore.
According to a January 9 order issued by the National Company Law Tribunal (NCLT) Kiranakart Technologies Private Ltd has been permitted to become the holding company of Zepto.
“The board of directors of the petitioner company believes that the scheme is in the best interests of the entity and its stakeholders, including shareholders, employees, and creditors,” the NCLT order stated.
For the fiscal year ending March 2024, Zepto’s revenue from operations more than doubled, increasing 2.2 times to Rs 4,454 crore, up from Rs 2,026 crore in FY23. During the same period, the company managed to slightly reduce its losses by 2%, bringing them down to Rs 1,248.6 crore.
The company has been raising capital. It recently secured $350 million in a funding round led by Motilal Oswal Private Wealth, pushing its valuation to $5 billion. The company has raised $1.85 billion to date.
Edited by Affirunisa Kankudti